FIRB Gives a Green Signal for the Acquisition of APN Outdoor

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On 26 November 2018, the company announced that the Foreign Investment Review Board (FIRB) has given a written notice stating that the Commonwealth is not having any objection to the proposed acquisition of a 100% interest in APN Outdoor by JCDecaux SA, through its wholly owned subsidiary JCDecaux ANZ Pty Ltd, by way of a scheme of arrangement (Scheme). After the release of this news the share price of the company increased by 0.15% as on 26 September 2018.

The implementation of the scheme depends upon number of conditions which includes approval of APN Outdoor shareholders at the Scheme Meeting, approval of court, the approval from New Zealand Overseas Investment Office and certain other customary conditions as outlined in the Scheme Implementation Agreement lodged with the ASX on 26 June 2018.

The Company’s Board of Directors continues to unanimously recommend that APN Outdoor shareholders vote in favour of the Scheme at the upcoming Scheme Meeting which is going to be held on 15 October 2018. Every APN Outdoor Director is intending to vote all APN Outdoor shares held or controlled by them in favour of this Scheme. 

In the first half of FY2018, the company successfully established the refocused sales centric approach to the APO business. The revenue of the company increased by 4% which has resulted a 7% growth in the EBITDA of the company. The company has also won several new contracts in First half of FY2018 and successfully renewed the existing contracts. According to the company’s guidance report, the company is expecting underlying EBITDA of $92 million to $96 million in FY 2018. The overhead growth of FY2018 is expected to grow 6% to 8%. The company is expecting capital expenditure to be in between $30 million to $35 million in FY2018 which is reflecting capex requirement of new tender wins. In August 2018, the company declared dividend of 7.0 cents per share, fully franked which was paid on 21 September 2018. In the past six months, the company’s share price increased by 43.53% from $4.640 to $6.66 as on 25 September 2018.

APO’s share traded at $6.670 with a market capitalization of $1.11 billion as on 26 September 2018 (AEST 2 PM).

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